Kelly\'s Corner Bakery purchased a lot in Columbus City five years ago at a cost

Question

Kelly's Corner Bakery purchased a lot in Columbus City five years ago at a cost of $740,000. Today, that lot has a market value of $810,000. At the time of the purchase, the company spent $55,000 to level the lot and another $5,800 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,320,000. The amount should be used as the initial cash outflow for this project is $____. Put a positive dollar amount, and round it to a whole dollar, e.g., 123456.

Explanation / Answer

The amount should be used as the initial cash outflowfor this project is = 1,320,000+810,000=$2130000

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